American image sharing social platform Pinterest announced on Tuesday (January 27th) that it plans to lay off up to 15% of its employees and reduce office space in order to increase its use of artificial intelligence (AI) and reshape its team structure. Following the announcement, the company’s stock price dropped by 9%.
According to the latest commission document submitted by the social media company, as of last April, Pinterest had over 4,500 employees worldwide.
Pinterest explained that it is “reallocating resources” to invest in its AI team, prioritize the development of “AI-driven products and features,” and adjust its sales strategy.
Pinterest is not the only company scaling back its workforce size due to investment in AI. Data released by consulting firm Challenger, Gray & Christmas shows that nearly 55,000 people in the United States lost their jobs due to AI in 2025.
The company expects to incur restructuring costs of $35 million to $45 million. In a securities filing, Pinterest stated that the layoffs are expected to be completed by the end of the third quarter in September, resulting in a more than 9% drop in its stock price.
Some experts question whether AI is the real cause of these companies laying off employees. They suggest that some companies may be “AI-washing,” attributing job cuts to artificial intelligence to mask cost-cutting measures or other operational issues.
“AI-washing” refers to when companies make false or exaggerated claims about the capabilities of their AI models to appear more advanced, attracting investment or gaining a competitive edge in the market. It is similar to the concept of “greenwashing,” where companies falsely label their products as environmentally friendly or sustainable.
Pinterest continues to integrate AI technology into its platform to provide users with more personalized and relevant content.
In October last year, the company launched “Pinterest Assistant,” a shopping tool that enhances user search and shopping experiences by providing visual, personalized, and proactive recommendations, allowing users to complete shopping on the same platform.
Facing increasing competition from TikTok, Facebook, and Instagram, Pinterest has also introduced more automated ad tools for marketers.
Pinterest CEO Bill Ready stated in November, “Our investments in artificial intelligence and product innovation are paying off. We have become a leader in visual search and successfully transformed our platform into an AI shopping assistant with 600 million users.”
Founded in California in 2010, Pinterest initially started as a social media platform for sharing images, where users could upload, repost, or share images. Later, it ventured into the visual search field and is now dedicated to incorporating AI technology throughout its platform to display more personalized content to users.
(Reference: CNBC)